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1. What is meant by International Financial Management?

2. What is meant by International Finance?


3. How does Financial Management of domestic companies differ from International Business?
4. What is BOP?
5. What are the components of BOP?
6. What is meant by BOP disequilibrium?
7. What is FCCB?
8. What is ECB?
9. What are the financial instruments issued in the International Capital Market?
10. What are the financial instruments issued in the International Equity Market?
11. What are the financial instruments issued in the International Bond Market?
12. What are the financial instruments issued in the International Money Market?
13. What are the long-term sources of International finance?
14. What is FDI?
15. What is FPI?
16. What is ADR?
17. What is GDR?
18. What is Euro Deposits?
19. What is Foreign Exchange Market?
20. Explain the functions of Foreign Exchange Market?
21. Who are the participants of Foreign Exchange Market?
22. Write short notes on European and American terms
23. Write short notes on Direct Quote and Indirect Quote
24. Write short notes on Spot Rates and Forward Rates
25. Write short notes on Swap points and swap Rates
26. Write short notes on Forward Premium and Forward discount
27. Write short notes on Cross Rate
28. Write short notes on Spread and Spread percentage
29. Write short notes on One – way quotes and two – way quotes
30. What is meant by Covered Interest Arbitrage?
31. What is meant by Uncovered Interest Arbitrage?
32. What is meant by Triangle Arbitrage?
33. What is meant by Law of one price?
34. What is meant by Purchasing Power Parity?
35. What is meant by Interest rate Parity?
36. What is meant by Fisher’s effect?
37. What is meant by International Fisher’s effect?
38. What is meant by Purchasing Power Parity approach of determination of exchange rate?
39. What is meant by Monetary approach to the Balance of Payment of determination of
exchange rate?
40. What is meant by Asset Market approach or Portfolio Balance approach of determination of
exchange rate?
41. What is meant by foreign exchange rate exposure Risk?
42. What are the types of foreign exchange rate exposure Risk?
43. What is meant by Transaction exposure Risk?
44. What is meant by Translation exposure Risk?
45. What is meant by Economic exposure Risk?
46. What is meant by Hedging of Risk?
47. What is meant by Money market Hedging of Risk?
48. What is meant by Hedging of Risk by Options?
49. What is meant by Hedging of Risk by Forward contracts?
50. What is meant by Hedging of Risk by Futures contracts?
51. Explain the internal techniques adopted for the hedging of foreign exchange rate Risks
52. Explain the External techniques adopted for the hedging of foreign exchange rate Risks

Part B

1. Explain the causes of BOP disequilibrium and corrective measures taken by Government?
2. Explain the modes of International Business?
3. Explain the theories of forecasting of exchange rates in detail
4. Explain the approaches of exchange rate determination in detail
5. Explain the internal and External techniques adopted for the hedging of foreign exchange
rate Risks
Practical sums
1. Calculation of direct quote from indirect quote
2. Calculation of indirect quote from Direct quote
3. Calculation of spread of Two - way quote
4. Calculation of spread percentage of Two - way quote
5. Calculation of cross rate of one - way quote
6. Calculation of cross rate of Two - way quote
7. Calculation of Forward Premium with Direct quote
8. Calculation of Forward Discount with direct quotes
9. Calculation of Forward Premium with Indirect quote
10. Calculation of Forward Discount with Indirect quotes
11. Calculation of Forward Premium with swap points
12. Calculation of Forward Discount with swap points
13. Calculation of Covered Interest Arbitrage?
14. Calculation of Uncovered Interest Arbitrage?
15. Calculation of Triangle Arbitrage?

Quotations on a Points Basis

u Spot rate ($/€) Bid $1.6000/ €) and ask $1.6050/ €

u I month forward rate with points 10 (bid) and 15 (ask)

u 1 month forward rates: $1.6010/ € and $1.6065

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